Correlation Between Silicon Craft and Siam Technic
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Siam Technic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Silicon Craft and Siam Technic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Siam Technic Concrete, you can compare the effects of market volatilities on Silicon Craft and Siam Technic and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Silicon Craft with a short position of Siam Technic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Siam Technic.
Diversification Opportunities for Silicon Craft and Siam Technic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silicon and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Siam Technic Concrete in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Technic Concrete and Silicon Craft is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Silicon Craft Technology are associated (or correlated) with Siam Technic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Technic Concrete has no effect on the direction of Silicon Craft i.e., Silicon Craft and Siam Technic go up and down completely randomly.
Pair Corralation between Silicon Craft and Siam Technic
Assuming the 90 days trading horizon Silicon Craft Technology is expected to generate 1.65 times more return on investment than Siam Technic. However, Silicon Craft is 1.65 times more volatile than Siam Technic Concrete. It trades about -0.02 of its potential returns per unit of risk. Siam Technic Concrete is currently generating about -0.07 per unit of risk. If you would invest 669.00 in Silicon Craft Technology on September 2, 2024 and sell it today you would lose (235.00) from holding Silicon Craft Technology or give up 35.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Siam Technic Concrete
Performance |
| Timeline |
| Silicon Craft Technology |
| Siam Technic Concrete |
Silicon Craft and Siam Technic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Siam Technic
The main advantage of trading using opposite Silicon Craft and Siam Technic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Siam Technic can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Siam Technic will offset losses from the drop in Siam Technic's long position.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
| Siam Technic vs. Wave Entertainment Public | Siam Technic vs. Vibhavadi Medical Center | Siam Technic vs. TPI Polene Public | Siam Technic vs. Asia Green Energy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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